Company is a separate legal entity incorporated under Companies Act, 2013. Key features: Separate legal entity (distinct from members), Limited liability (shareholders liable only to the extent of shares), Perpetual succession (continues regardless of member changes), Transferability of shares (freely transferable unless restricted), Professional management through Board of Directors. Types: Private Company (limited members, restricted share transfer), Public Company (unlimited members, free share transfer, can raise public funds). Financial statements of companies governed by: Companies Act, 2013, Indian Accounting Standards (IND AS), Schedule VI for format, Companies (Accounting Standards) Rules, Accounting standards and corporate governance requirements. Financial Statements Required: Balance Sheet (Statement of Financial Position), Statement of Profit and Loss (I&E Account), Cash Flow Statement, Statement of Changes in Equity. Key Accounts: Share Capital, Reserves and Surplus, Borrowings, Payables, Assets, Investments. Accounting Treatment: Governed by entity concept; transactions of company and shareholders kept separate. Dividends: Amounts returned to shareholders from profits; not expense but appropriation of profit. Exam tip: Understand company structure and separate entity concept; grasp the significance of limited liability; know the regulatory framework; distinguish private from public companies.